7.8 million subscribers of the Employees Pension Scheme (EPS) will now be able to withdraw their pension from any bank and any branch across the country, starting January 1, 2025, as the labour minister Mansukh Mandaviya on Wednesday approved the centralised pension payment system (CPPS).
“The approval of the CPPS marks a significant milestone in the modernisation of the retirement fund body. By enabling pensioners to receive their pensions from any bank, any branch, anywhere in the country, this initiative addresses the long-standing challenges faced by pensioners and ensures a seamless and efficient disbursement mechanism,” he said.
By harnessing advanced IT and banking technologies, it will offer a more efficient, seamless, and user-friendly experience for pensioners. The CPPS would also ensure the disbursement of pensions throughout India without any need for the transfer of Pension Payment Orders (PPO) from one office to another, even when the pensioner moves from one location to another or changes their bank or branch. This would be a great relief to pensioners who move to their hometown after retirement.
This facility is launched as part of EPFO’s ongoing IT modernisation project. In the next phase, CPPS will enable a smooth transition to an Aadhaar-based payment system (ABPS).
The CPPS is a shift from the existing pension disbursement system that is decentralised, with each zonal/regional office of EPFO maintaining separate agreements with only 3-4 banks.
There will also be no need for pensioners to visit the branch for any verification at the time of commencement of the pension, and the pension shall be immediately credited upon release. In addition, EPFO expects a significant cost reduction in pension disbursement after moving to the new system.
“This is a crucial step in our ongoing efforts to transform the EPFO into a more robust, responsive, and tech-enabled organisation, committed to serving the needs of its members and pensioners better,” said Mandaviya.
First Published: Sep 04 2024 | 7:26 PM IS